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Stamp Duty Exemptions & Refunds 2026 - When You Don't Pay

Every SDLT exemption, relief and refund scenario explained with eligibility criteria and claim processes.

Full List of SDLT Exemptions

Transfers on divorce or dissolution
Property transferred between spouses or civil partners under a court order or separation agreement is exempt from SDLT. No stamp duty is payable even if there is a mortgage on the property. This applies whether the transfer is part of a consent order or a court-imposed order.
Transfers between spouses or civil partners (no consideration)
If you transfer property to your spouse or civil partner and they pay nothing for it (no cash payment, no assumption of mortgage debt), no SDLT is due. If they take over a mortgage, that counts as chargeable consideration and SDLT may apply on the mortgage value.
Inherited property
Receiving property through a will or intestacy does not attract SDLT. The inheritance itself is not a purchase. However, if a beneficiary purchases another beneficiary's share of an inherited property, SDLT may apply to that transaction.
Properties under £40,000
Purchases where the chargeable consideration is £40,000 or less are not notifiable to HMRC and attract no SDLT. This threshold applies to the total consideration, not just the purchase price.
Caravans, mobile homes and houseboats
Purchases of caravans, mobile homes and houseboats are exempt from SDLT regardless of price. These are not treated as conventional residential property for SDLT purposes. The exemption applies even if these are used as main residences.
Crown transactions
Transfers involving the Crown (including to or from government departments) are generally exempt from SDLT under specific statutory provisions.
Charities
Qualifying charities can claim relief from SDLT when purchasing property for charitable purposes. The relief must be claimed on the SDLT return and requires evidence of charitable status.
Registered social landlords
Registered providers of social housing purchasing property can claim relief from SDLT, subject to conditions about use for social housing purposes.

Relief Schemes

First-Time Buyer Relief

0% on properties up to £300,000; 5% on £300,001-£500,000. No relief above £500,000. All buyers must be FTBs.

Full guide →
Multiple Dwellings Relief: ABOLISHED

MDR was abolished on 1 June 2024. Previously allowed portfolio landlords to average SDLT across multiple units. No longer available for any transactions from June 2024 onwards.

Corporate Group Relief

Companies within the same group (75% common ownership) can transfer property between group members without incurring SDLT. Clawback applies if the group relationship ends within 3 years.

When You Can Claim a Refund

5% surcharge refund (sold previous main residence)

If you paid the 5% additional property surcharge because you bought a new main residence before selling your previous one, you can claim a refund if you sell the previous home within 3 years of buying the new one.

How to claim: Use HMRC's online service. Apply within 12 months of selling the previous property. Provide details of both transactions.
2% surcharge refund (became UK resident)

Non-UK residents who become UK resident within 2 years of purchase (183 days in a 365-day period starting or ending within 2 years of purchase) can claim back the 2% non-resident surcharge.

How to claim: HMRC online service. Apply within 12 months of meeting the residency test. Provide evidence of UK residence (utility bills, payslips, etc).

How to Claim a Refund

1
Identify the qualifying event (sold previous main residence, became UK resident, etc.)
2
Log in to HMRC online services or contact your solicitor to assist with the claim
3
Complete the SDLT refund claim form (previously SDLT14, now via online service)
4
Provide supporting evidence: completion statements for both properties, proof of dates, etc.
5
Submit within the time limit (12 months from the qualifying event)
6
HMRC processes the refund, usually within 4-6 weeks

Common Misconceptions

MYTHI am a first-time buyer at £525,000 - I am exempt
FACTFirst-time buyer relief only applies to properties up to £500,000. Above this, standard rates apply to the full amount with no relief whatsoever.
MYTHNew build properties are exempt from stamp duty
FACTThere is no general stamp duty exemption for new builds. The same rates apply as for any residential purchase. Some house builders offer to pay buyers' stamp duty as an incentive, but this is a commercial arrangement, not an exemption.
MYTHI sold my house before buying this one, so no surcharge applies
FACTThe surcharge does not apply if you are replacing your main residence. However, timing matters. If you have not sold your previous property at the point of completion on the new one, the surcharge applies (though you can reclaim it once you sell within 3 years).
MYTHStamp duty is optional if the lender does not require it
FACTSDLT is a legal obligation. It must be paid within 14 days of completion regardless of what your lender requires. Failure to pay results in penalties, interest, and HMRC investigation.

FAQs

What properties are exempt from stamp duty?

Properties exempt from SDLT include: transfers on divorce/dissolution, transfers between spouses or civil partners for no consideration, inherited property (through a will), properties under £40,000, caravans and houseboats, Crown transactions, and charitable reliefs. Most common residential purchases do not qualify for exemption unless they fall within these specific categories.

Can you claim stamp duty back?

Yes, in specific circumstances. The most common refund is the 5% additional property surcharge refund when you sell your previous main residence within 3 years. Apply to HMRC within 12 months of the sale. Non-UK residents can reclaim the 2% surcharge after becoming UK resident within 2 years. Use HMRC's online service for both.

Do you pay stamp duty on inherited property?

No SDLT is payable on property received through a will or intestacy - the inheritance itself is not a chargeable transaction. However, owning inherited property may affect your status as a first-time buyer and may trigger the additional property surcharge if you later buy another property. See the first-time buyer guide for details on how inheritance affects relief eligibility.

Is stamp duty payable on transfer in divorce?

Transfers of property between separating or divorcing spouses or civil partners made under a court order or written separation agreement are exempt from SDLT. This applies even if there is a mortgage on the property that is being transferred. No SDLT return is required for qualifying divorce transfers, though your solicitor should retain evidence of the court order.

Calculate Your DutyFirst-Time BuyerSecond HomeHow to PayNon-UK Resident